Internal Revenue Code – Section 164

Sec. 164. Taxes

-STATUTE-

(a) General rule

Except as otherwise provided in this section, the following taxes

shall be allowed as a deduction for the taxable year within which

paid or accrued:

(1) State and local, and foreign, real property taxes.

(2) State and local personal property taxes.

(3) State and local, and foreign, income, war profits, and

excess profits taxes.

(4) The GST tax imposed on income distributions.

(5) The environmental tax imposed by section 59A.

(6) Qualified motor vehicle taxes.

 

In addition, there shall be allowed as a deduction State and local,

and foreign, taxes not described in the preceding sentence which

are paid or accrued within the taxable year in carrying on a trade

or business or an activity described in section 212 (relating to

expenses for production of income). Notwithstanding the preceding

sentence, any tax (not described in the first sentence of this

subsection) which is paid or accrued by the taxpayer in connection

with an acquisition or disposition of property shall be treated as

part of the cost of the acquired property or, in the case of a

disposition, as a reduction in the amount realized on the

disposition.

(b) Definitions and special rules

For purposes of this section -

(1) Personal property taxes

The term "personal property tax" means an ad valorem tax which

is imposed on an annual basis in respect of personal property.

(2) State or local taxes

A State or local tax includes only a tax imposed by a State, a

possession of the United States, or a political subdivision of

any of the foregoing, or by the District of Columbia.

(3) Foreign taxes

A foreign tax includes only a tax imposed by the authority of a

foreign country.

(4) Special rules for GST tax

(A) In general

The GST tax imposed on income distributions is -

(i) the tax imposed by section 2601, and

(ii) any State tax described in section 2604,

 

but only to the extent such tax is imposed on a transfer which

is included in the gross income of the distributee and to which

section 666 does not apply.

(B) Special rule for tax paid before due date

Any tax referred to in subparagraph (A) imposed with respect

to a transfer occurring during the taxable year of the

distributee (or, in the case of a taxable termination, the

trust) which is paid not later than the time prescribed by law

(including extensions) for filing the return with respect to

such transfer shall be treated as having been paid on the last

day of the taxable year in which the transfer was made.

(5) General sales taxes

For purposes of subsection (a) -

(A) Election to deduct State and local sales taxes in lieu of

State and local income taxes

At the election of the taxpayer for the taxable year,

subsection (a) shall be applied -

(i) without regard to the reference to State and local

income taxes, and

(ii) as if State and local general sales taxes were

referred to in a paragraph thereof.

(B) Definition of general sales tax

The term "general sales tax" means a tax imposed at one rate

with respect to the sale at retail of a broad range of classes

of items.

(C) Special rules for food, etc.

In the case of items of food, clothing, medical supplies, and

motor vehicles -

(i) the fact that the tax does not apply with respect to

some or all of such items shall not be taken into account in

determining whether the tax applies with respect to a broad

range of classes of items, and

(ii) the fact that the rate of tax applicable with respect

to some or all of such items is lower than the general rate

of tax shall not be taken into account in determining whether

the tax is imposed at one rate.

(D) Items taxed at different rates

Except in the case of a lower rate of tax applicable with

respect to an item described in subparagraph (C), no deduction

shall be allowed under this paragraph for any general sales tax

imposed with respect to an item at a rate other than the

general rate of tax.

(E) Compensating use taxes

A compensating use tax with respect to an item shall be

treated as a general sales tax. For purposes of the preceding

sentence, the term "compensating use tax" means, with respect

to any item, a tax which -

(i) is imposed on the use, storage, or consumption of such

item, and

(ii) is complementary to a general sales tax, but only if a

deduction is allowable under this paragraph with respect to

items sold at retail in the taxing jurisdiction which are

similar to such item.

(F) Special rule for motor vehicles

In the case of motor vehicles, if the rate of tax exceeds the

general rate, such excess shall be disregarded and the general

rate shall be treated as the rate of tax.

(G) Separately stated general sales taxes

If the amount of any general sales tax is separately stated,

then, to the extent that the amount so stated is paid by the

consumer (other than in connection with the consumer's trade or

business) to the seller, such amount shall be treated as a tax

imposed on, and paid by, such consumer.

(H) Amount of deduction may be determined under tables

(i) In general

At the election of the taxpayer for the taxable year, the

amount of the deduction allowed under this paragraph for such

year shall be -

(I) the amount determined under this paragraph (without

regard to this subparagraph) with respect to motor

vehicles, boats, and other items specified by the

Secretary, and

(II) the amount determined under tables prescribed by the

Secretary with respect to items to which subclause (I) does

not apply.

(ii) Requirements for tables

The tables prescribed under clause (i) -

(I) shall reflect the provisions of this paragraph,

(II) shall be based on the average consumption by

taxpayers on a State-by-State basis (as determined by the

Secretary) of items to which clause (i)(I) does not apply,

taking into account filing status, number of dependents,

adjusted gross income, and rates of State and local general

sales taxation, and

(III) need only be determined with respect to adjusted

gross incomes up to the applicable amount (as determined

under section 68(b)).

(I) Application of paragraph

This paragraph shall apply to taxable years beginning after

December 31, 2003, and before January 1, 2012.

(6) Qualified motor vehicle taxes

(A) In general

For purposes of this section, the term "qualified motor

vehicle taxes" means any State or local sales or excise tax

imposed on the purchase of a qualified motor vehicle.

(B) Limitation based on vehicle price

The amount of any State or local sales or excise tax imposed

on the purchase of a qualified motor vehicle taken into account

under subparagraph (A) shall not exceed the portion of such tax

attributable to so much of the purchase price as does not

exceed $49,500.

(C) Income limitation

The amount otherwise taken into account under subparagraph

(A) (after the application of subparagraph (B)) for any taxable

year shall be reduced (but not below zero) by the amount which

bears the same ratio to the amount which is so treated as -

(i) the excess (if any) of -

(I) the taxpayer's modified adjusted gross income for

such taxable year, over

(II) $125,000 ($250,000 in the case of a joint return),

bears to

 

(ii) $10,000.

 

For purposes of the preceding sentence, the term "modified

adjusted gross income" means the adjusted gross income of the

taxpayer for the taxable year (determined without regard to

sections 911, 931, and 933).

(D) Qualified motor vehicle

For purposes of this paragraph -

(i) In general

The term "qualified motor vehicle" means -

(I) a passenger automobile or light truck which is

treated as a motor vehicle for purposes of title II of the

Clean Air Act, the gross vehicle weight rating of which is

not more than 8,500 pounds, and the original use of which

commences with the taxpayer,

(II) a motorcycle the gross vehicle weight rating of

which is not more than 8,500 pounds and the original use of

which commences with the taxpayer, and

(III) a motor home the original use of which commences

with the taxpayer.

(ii) Other terms

The terms "motorcycle" and "motor home" have the meanings

given such terms under section 571.3 of title 49, Code of

Federal Regulations (as in effect on the date of the

enactment of this paragraph).

(E) Qualified motor vehicle taxes not included in cost of

acquired property

The last sentence of subsection (a) shall not apply to any

qualified motor vehicle taxes.

(F) Coordination with general sales tax

This paragraph shall not apply in the case of a taxpayer who

makes an election under paragraph (5) for the taxable year.

(G) Termination

This paragraph shall not apply to purchases after December

31, 2009.

(c) Deduction denied in case of certain taxes

No deduction shall be allowed for the following taxes:

(1) Taxes assessed against local benefits of a kind tending to

increase the value of the property assessed; but this paragraph

shall not prevent the deduction of so much of such taxes as is

properly allocable to maintenance or interest charges.

(2) Taxes on real property, to the extent that subsection (d)

requires such taxes to be treated as imposed on another taxpayer.

(d) Apportionment of taxes on real property between seller and

purchaser

(1) General rule

For purposes of subsection (a), if real property is sold during

any real property tax year, then -

(A) so much of the real property tax as is properly allocable

to that part of such year which ends on the day before the date

of the sale shall be treated as a tax imposed on the seller,

and

(B) so much of such tax as is properly allocable to that part

of such year which begins on the date of the sale shall be

treated as a tax imposed on the purchaser.

(2) Special rules

(A) in the case of any sale of real property, if -

(i) a taxpayer may not, by reason of his method of

accounting, deduct any amount for taxes unless paid, and

(ii) the other party to the sale is (under the law imposing

the real property tax) liable for the real property tax for

the real property tax year,

 

then for purposes of subsection (a) the taxpayer shall be

treated as having paid, on the date of the sale, so much of

such tax as, under paragraph (1) of this subsection, is treated

as imposed on the taxpayer. For purposes of the preceding

sentence, if neither party is liable for the tax, then the

party holding the property at the time the tax becomes a lien

on the property shall be considered liable for the real

property tax for the real property tax year.

(B) In the case of any sale of real property, if the

taxpayer's taxable income for the taxable year during which the

sale occurs is computed under an accrual method of accounting,

and if no election under section 461(c) (relating to the

accrual of real property taxes) applies, then, for purposes of

subsection (a), that portion of such tax which -

(i) is treated, under paragraph (1) of this subsection, as

imposed on the taxpayer, and

(ii) may not, by reason of the taxpayer's method of

accounting, be deducted by the taxpayer for any taxable year,

 

shall be treated as having accrued on the date of the sale.

(e) Taxes of shareholder paid by corporation

Where a corporation pays a tax imposed on a shareholder on his

interest as a shareholder, and where the shareholder does not

reimburse the corporation, then -

(1) the deduction allowed by subsection (a) shall be allowed to

the corporation; and

(2) no deduction shall be allowed the shareholder for such tax.

(f) Deduction for one-half of self-employment taxes

(1) In general

In the case of an individual, in addition to the taxes

described in subsection (a), there shall be allowed as a

deduction for the taxable year an amount equal to one-half of the

taxes imposed by section 1401 for such taxable year.

(2) Deduction treated as attributable to trade or business

For purposes of this chapter, the deduction allowed by

paragraph (1) shall be treated as attributable to a trade or

business carried on by the taxpayer which does not consist of the

performance of services by the taxpayer as an employee.

(g) Cross references

(1) For provisions disallowing any deduction for certain

taxes, see section 275.

(2) For treatment of taxes imposed by Indian tribal

governments (or their subdivisions), see section 7871.

 

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 47; Pub. L. 85-866, title I,

Sec. 6(a), Sept. 2, 1958, 72 Stat. 1608; Pub. L. 88-272, title II,

Sec. 207(a), (b)(1), (2), Feb. 26, 1964, 78 Stat. 40-42; Pub. L. 92-

580, Sec. 4(a), Oct. 27, 1972, 86 Stat. 1277; Pub. L. 94-455,

title XIX, Secs. 1901(a)(25), 1951(b)(3)(A), Oct. 4, 1976, 90 Stat.

1767, 1837; Pub. L. 95-600, title I, Sec. 111(a), (b), Nov. 6,

1978, 92 Stat. 2777; Pub. L. 96-223, title I, Sec. 101(b), Apr. 2,

1980, 94 Stat. 250; Pub. L. 97-473, title II, Sec. 202(b)(3), Jan.

14, 1983, 96 Stat. 2609; Pub. L. 98-21, title I, Sec. 124(c)(1),

Apr. 20, 1983, 97 Stat. 90; Pub. L. 98-369, div. A, title IV, Sec.

474(r)(29)(F), July 18, 1984, 98 Stat. 844; Pub. L. 99-499, title

V, Sec. 516(b)(2)(A), Oct. 17, 1986, 100 Stat. 1771; Pub. L. 99-

514, title I, Sec. 134, title XIV, Sec. 1432(a)(1), (2), Oct. 22,

1986, 100 Stat. 2116, 2729; Pub. L. 100-418, title I, Sec.

1941(b)(2)(A), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100-647,

title I, Sec. 1018(u)(11), Nov. 10, 1988, 102 Stat. 3590; Pub. L.

104-188, title I, Sec. 1704(t)(79), Aug. 20, 1996, 110 Stat. 1891;

Pub. L. 108-357, title V, Sec. 501(a), Oct. 22, 2004, 118 Stat.

1520; Pub. L. 109-135, title IV, Sec. 403(r)(1), Dec. 21, 2005, 119

Stat. 2628; Pub. L. 109-432, div. A, title I, Sec. 103(a), Dec. 20,

2006, 120 Stat. 2934; Pub. L. 110-343, div. C, title II, Sec.

201(a), Oct. 3, 2008, 122 Stat. 3864; Pub. L. 111-5, div. B, title

I, Sec. 1008(a), (b), Feb. 17, 2009, 123 Stat. 317; Pub. L. 111-

148, title IX, Sec. 9015(b)(2)(A), Mar. 23, 2010, 124 Stat. 871;

Pub. L. 111-312, title VII, Sec. 722(a), Dec. 17, 2010, 124 Stat.

3316.)

 

 

-STATAMEND-

AMENDMENT OF SUBSECTION (F)

Pub. L. 111-148, title IX, Sec. 9015(b)(2)(A), (c), Mar. 23,

2010, 124 Stat. 871, 872, provided that, applicable with respect to

remuneration received, and taxable years beginning, after Dec. 31,

2012, subsection (f) of this section is amended by inserting

"(other than the taxes imposed by section 1401(b)(2))" after

"section 1401)".

 

-REFTEXT-

REFERENCES IN TEXT

The Clean Air Act, referred to in subsec. (b)(6)(D)(i)(I), is act

July 14, 1955, ch. 360, 69 Stat. 322. Title II of the Act, known as

the National Emission Standards Act, is classified generally to

subchapter II (Sec. 7521 et seq.) of chapter 85 of Title 42, The

Public Health and Welfare. For complete classification of this Act

to the Code, see Short Title note set out under section 7401 of

Title 42 and Tables.

The date of the enactment of this paragraph, referred to in

subsec. (b)(6)(D)(ii), is the date of enactment of Pub. L. 111-5,

which was approved Feb. 17, 2009.

 

 

-MISC1-

AMENDMENTS

2010 - Subsec. (b)(5)(I). Pub. L. 111-312 substituted "January 1,

2012" for "January 1, 2010".

2009 - Subsec. (a)(6). Pub. L. 111-5, Sec. 1008(a), added par.

(6).

Subsec. (b)(6). Pub. L. 111-5, Sec. 1008(b), added par. (6).

2008 - Subsec. (b)(5)(I). Pub. L. 110-343 substituted "January 1,

2010" for "January 1, 2008".

2006 - Subsec. (b)(5)(I). Pub. L. 109-432 substituted "2008" for

"2006".

2005 - Subsec. (b)(5)(A). Pub. L. 109-135 reenacted heading

without change and amended text generally. Prior to amendment, text

read as follows:

"(i) In general. - At the election of the taxpayer for the

taxable year, subsection (a) shall be applied -

"(I) without regard to the reference to State and local income

taxes, and

"(II) as if State and local general sales taxes were referred

to in a paragraph thereof."

2004 - Subsec. (b)(5). Pub. L. 108-357 added par. (5).

1996 - Subsec. (a)(4), (5). Pub. L. 104-188 added pars. (4) and

(5) and struck out former pars. (4) and (5) which read as follows:

"(4) The environmental tax imposed by section 59A.

"(5) The GST tax imposed on income distributions."

1988 - Subsec. (a)(4). Pub. L. 100-418 struck out par. (4)

relating to windfall profit tax imposed by section 4986 and

redesignated par. (5) relating to environmental tax as (4).

Subsec. (a)(5). Pub. L. 100-647 substituted "The GST" for "the

GST".

Pub. L. 100-418 redesignated par. (5), relating to environmental

tax, as (4).

1986 - Subsec. (a). Pub. L. 99-514, Sec. 134(a)(2), inserted

"Notwithstanding the preceding sentence, any tax (not described in

the first sentence of this subsection) which is paid or accrued by

the taxpayer in connection with an acquisition or disposition of

property shall be treated as part of the cost of the acquired

property or, in the case of a disposition, as a reduction in the

amount realized on the disposition."

Subsec. (a)(4). Pub. L. 99-514, Sec. 134(a)(1), struck out par.

(4) relating to "State and local general sales taxes" and

redesignated as par. (4) former par. (5) relating to windfall

profit tax.

Subsec. (a)(5). Pub. L. 99-514, Sec. 1432(a)(1), added par. (5)

relating to GST tax imposed on income distributions.

Pub. L. 99-499 added par. (5) relating to environmental tax.

Subsec. (b)(2). Pub. L. 99-514, Sec. 134(b)(1), (2), redesignated

par. (3) as (2) and struck out former par. (2), general sales taxes

provisions, subpars. (A) to (E) of which covered in general rule,

special rules for food, etc., items taxed at different rates,

compensating use taxes, and special rules for motor vehicles,

respectively.

Subsec. (b)(3). Pub. L. 99-514, Sec. 134(b)(2), redesignated par.

(4) as (3). Former par. (3) redesignated (2).

Subsec. (b)(4). Pub. L. 99-514, Sec. 1432(a)(2), added par. (4).

Pub. L. 99-514, Sec. 134(b)(2), redesignated par. (4) as (3).

Subsec. (b)(5). Pub. L. 99-514, Sec. 134(b)(1), struck out par.

(5), separately stated general sales taxes, which read as follows:

"If the amount of any general sales tax is separately stated, then,

to the extent that the amount so stated is paid by the consumer

(otherwise than in connection with the consumer's trade or

business) to his seller, such amount shall be treated as a tax

imposed on, and paid by, such consumer."

1984 - Subsec. (f). Pub. L. 98-369 redesignated pars. (2) and (3)

as pars. (1) and (2), respectively. Former par. (1), which referred

to section 1451 for provisions disallowing any deduction for the

payment of the tax imposed by subchapter B of chapter 3 (relating

to tax-free covenant bonds), was struck out.

1983 - Subsec. (f). Pub. L. 98-21 added subsec. (f). Former

subsec. (f) redesignated (g).

Subsec. (f)(3). Pub. L. 97-473 added par. (3).

Subsec. (g). Pub. L. 98-21 redesignated subsec. (f) as (g).

1980 - Subsec. (a)(5). Pub. L. 96-223 added par. (5).

1978 - Subsec. (a)(5). Pub. L. 95-600, Sec. 111(a), struck out

par. (5) relating to a deduction for State and local taxes on the

sale of gasoline, diesel fuel, and other motor fuels.

Subsec. (b)(5). Pub. L. 95-600, Sec. 111(b), struck out in

heading "and gasoline taxes" after "sales taxes", and in text "or

of any tax on the sale of gasoline, diesel fuel, or other motor

fuel" after "sales tax".

1976 - Subsec. (d)(2). Pub. L. 94-455, Sec. 1901(a)(25),

redesignated subpar. (D) as (B), and struck out subpar. (B) which

related to the taxable years that subsec. (d)(1) applied and

subpar. (C) which related to the limitations on subsec. (d)(1)

where real property tax was allowable as a deduction under the

Internal Revenue Code of 1939.

Subsecs. (f), (g). Pub. L. 94-455, Sec. 1951(b)(3)(A),

redesignated subsec. (g) as (f). Former subsec. (f), which related

to payments for municipal services in atomic energy communities,

was struck out.

1972 - Subsec. (b)(2)(E). Pub. L. 92-580 added subpar. (E).

1964 - Subsec. (a). Pub. L. 88-272, Sec. 207(a), limited the

subsection to State, local and foreign real property, income, war

profits, excess profits, and unspecified taxes, on a business or

activity described in section 212, and to State and local personal

property, general sales, gasoline, diesel fuel and other motor fuel

taxes.

Subsec. (b). Pub. L. 88-272, Sec. 207(a), added subsec. (b).

Former subsec. (b), which denied the deduction for certain Federal

income taxes, for Federal war profits and excess profits taxes,

import duties, excise and stamp taxes, and estate, inheritance,

legacy, succession and gift taxes, local assessments against

benefits increasing property values, and certain taxes imposed by

any foreign country or possession of the United States if the

taxpayer chose to benefit by section 901 relating to foreign tax

credit, and for taxes on real property to the extent that they are

treated as imposed on another taxpayer, was struck out.

Subsec. (c). Pub. L. 88-272, Sec. 207(a), substituted provisions

denying the deduction for taxes assessed against local benefits

which increase property value, except for so much as is properly

allocable to maintenance or interest charges, and for real property

taxes to the extent they are treated as imposed on another

taxpayer, for provisions relating to certain retail sales taxes and

gasoline taxes, the extent to which they were deductible, and to

definition of "state or local sales tax".

Subsec. (f). Pub. L. 88-272, Sec. 207(b)(1), inserted "State"

before "real property taxes".

Subsec. (g). Pub. L. 88-272, Sec. 207(b)(2), designated existing

provisions as par. (1), substituted "1451" for "1451(f)" and added

par. (2).

1958 - Subsecs. (f), (g). Pub. L. 85-866, Sec. 6(a), added

subsec. (f) and redesignated former subsec. (f) as (g).

 

EFFECTIVE DATE OF 2010 AMENDMENT

Pub. L. 111-312, title VII, Sec. 722(b), Dec. 17, 2010, 124 Stat.

3316, provided that: "The amendment made by this section [amending

this section] shall apply to taxable years beginning after December

31, 2009."

Pub. L. 111-148, title IX, Sec. 9015(c), Mar. 23, 2010, 124 Stat.

872, provided that: "The amendments made by this section [amending

this section and sections 1401, 1402, 3101, and 3102 of this title]

shall apply with respect to remuneration received, and taxable

years beginning, after December 31, 2012."

 

EFFECTIVE DATE OF 2009 AMENDMENT

Amendment by Pub. L. 111-5 applicable to purchases on or after

Feb. 17, 2009, in taxable years ending after such date, see section

1008(e) of Pub. L. 111-5, set out as a note under section 56 of

this title.

 

EFFECTIVE DATE OF 2008 AMENDMENT

Pub. L. 110-343, div. C, title II, Sec. 201(b), Oct. 3, 2008, 122

Stat. 3864, provided that: "The amendment made by this section

[amending this section] shall apply to taxable years beginning

after December 31, 2007."

 

EFFECTIVE DATE OF 2006 AMENDMENT

Pub. L. 109-432, div. A, title I, Sec. 103(b), Dec. 20, 2006, 120

Stat. 2934, provided that: "The amendments made by this section

[amending this section] shall apply to taxable years beginning

after December 31, 2005."

 

EFFECTIVE DATE OF 2005 AMENDMENT

Amendment by Pub. L. 109-135 effective as if included in the

provision of the American Jobs Creation Act of 2004, Pub. L. 108-

357, to which such amendment relates, see section 403(nn) of Pub.

L. 109-135, set out as a note under section 26 of this title.

 

EFFECTIVE DATE OF 2004 AMENDMENT

Pub. L. 108-357, title V, Sec. 501(b), Oct. 22, 2004, 118 Stat.

1521, provided that: "The amendments made by this section [amending

this section] shall apply to taxable years beginning after December

31, 2003."

 

EFFECTIVE DATE OF 1988 AMENDMENTS

Amendment by Pub. L. 100-647 effective, except as otherwise

provided, as if included in the provision of the Tax Reform Act of

1986, Pub. L. 99-514, to which such amendment relates, see section

1019(a) of Pub. L. 100-647, set out as a note under section 1 of

this title.

Section 1941(c) of Pub. L. 100-418 provided that: "The amendments

made by this section [amending this section and sections 193, 291,

6161, 6211, 6212, 6213, 6214, 6302, 6344, 6501, 6511, 6512, 6611,

6654, 6655, 6724, 6862, 7422, and 7512 of this title, and repealing

sections 280D, 4986 to 4998, 6050C, 6076, 6232, 6429, 6430, and

7241 of this title] shall apply to crude oil removed from the

premises on or after the date of the enactment of this Act [Aug.

23, 1988]."

 

EFFECTIVE DATE OF 1986 AMENDMENTS

Amendment by section 134 of Pub. L. 99-514 applicable to taxable

years beginning after Dec. 31, 1986, see section 151(a) of Pub. L.

99-514, set out as a note under section 1 of this title.

Amendment by section 1432(a)(1), (2) of Pub. L. 99-514 applicable

to generation-skipping transfers (within the meaning of section

2611 of this title) made after Oct. 22, 1986, except as otherwise

provided, see section 1433 of Pub. L. 99-514, set out as an

Effective Date note under section 2601 of this title.

Amendment by Pub. L. 99-499 applicable to taxable years beginning

after Dec. 31, 1986, see section 516(c) of Pub. L. 99-499, set out

as a note under section 26 of this title.

 

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 not applicable with respect to

obligations issued before Jan. 1, 1984, see section 475(b) of Pub.

L. 98-369, set out as a note under section 33 of this title.

 

EFFECTIVE DATE OF 1983 AMENDMENTS

Amendment by Pub. L. 98-21 applicable to taxable years beginning

after Dec. 31, 1989, see section 124(d)(2) of Pub. L. 98-21, set

out as a note under section 1401 of this title.

For effective date of amendment by Pub. L. 97-473, see section

204(1) of Pub. L. 97-473, set out as an Effective Date note under

section 7871 of this title.

 

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,

1980, see section 101(i) of Pub. L. 96-223, set out as an Effective

Date note under section 6161 of this title.

 

EFFECTIVE DATE OF 1978 AMENDMENT

Section 111(c) of Pub. L. 95-600 provided that: "The amendments

made by this section [amending this section] shall apply to taxable

years beginning after December 31, 1978."

 

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 applicable with respect to taxable

years beginning after Dec. 31, 1976, see sections 1901(d) and

1951(d) of Pub. L. 94-455, set out as notes under sections 2 and 72

of this title, respectively.

 

EFFECTIVE DATE OF 1972 AMENDMENT

Section 4(b) of Pub. L. 92-580 provided that: "The amendment made

by subsection (a) [amending this section] shall apply to taxable

years ending on or after January 1, 1971."

 

EFFECTIVE DATE OF 1964 AMENDMENT

Section 207(c) of Pub. L. 88-272, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) General rule. - Except as provided in paragraph (2), the

amendments made by this section [enacting section 275 of this title

and amending this section and sections 535, 545, 556, 901, and 903

of this title] shall apply to taxable years beginning after

December 31, 1963.

"(2) Special taxing districts. - Section 164(c)(1) of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by

subsection (a)) shall not prevent the deduction under section 164

of such Code (as so amended) of taxes levied by a special taxing

district which is described in section 164(b)(5) of such Code (as

in effect for a taxable year ending on December 31, 1963) and which

was in existence on December 31, 1963, for the purpose of retiring

indebtedness existing on such date."

 

EFFECTIVE DATE OF 1958 AMENDMENT

Section 6(b) of Pub. L. 85-866 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to taxable years beginning after December 31, 1957."

 

SAVINGS PROVISION

Section 1951(b)(3)(B) of Pub. L. 94-455 provided that:

"Notwithstanding subparagraph (A) [amending this section], any

amount paid or accrued in a taxable year beginning after December

31, 1976, to the Atomic Energy Commission or its successors for

municipal-type services shall be allowed as a deduction under

section 164 if such amount would have been deductible by reason of

section 164(f) (as in effect for a taxable year ending on December

31, 1976) and if the amount is paid or accrued with respect to real

property in a community (within the meaning of section 21(b) of the

Atomic Energy Community Act of 1955 (42 U.S.C. 2304(b))) in which

the Commission on December 31, 1976, was rendering municipal-type

services for which it received compensation from the owners of

property within such community."

 

-End-